Taxing decisions on return to work
Sir, – With reference to Fiona Reddan’s article “Stay at home parents face taxing decisions on return to work” (February 21st), it is worth noting that a two-income family will take home significantly more of their family income than a family with one income. The substantial burden of the punitive policy of tax individualisation results in the following inequality. To use your example, on a salary of €42,800, if this is earned between two spouses equally the tax paid will be €4177.
However, if it is earned by one spouse alone, the tax paid will be €6,752. So paying tax on one income rather than two despite joint assessment will result in a €2.500 higher tax bill.
Families with a stay at home parent have sacrificed one salary to facilitate the work in the home.
Surely the State should not inflict a further penalty on these families by forcing them to pay substantially more tax than dual-income families.
Some other important factors to consider when making the decision to stay at home, you may agree. – Yours, etc,
Stay At Home